Photo: Photo / AFP
Fonterra's first half net profit is up 8 percent to $729 million, with revenue growth of 14 percent.
Chief executive Miles Hurrell said the co-op was in a great shape, with milk collections, the forecast Farmgate Milk Price and earnings performance all up on this time last year.
Key numbers for the six months ended January compared with a year ago:
- Net profit $729m vs $674m
- Revenue $12.59b vs $11.26b
- Cost of goods sold $10.36b vs $9.05b
- Interim dividend 22 cents a share vs 15 cps
The dairy cooperative reported earnings of 44 cents a share for the first half and reaffirmed its full year guidance of between 55 to 75 cents per share, with a 2024/25 season forecast Farmgate Milk Price of $10 a kilo of milk solids (kgMS) at the midpoint of the forecast range.
"In terms of milk flows, our forecast milk collections for the year are up 2.7 percent on this time last year to 1510 million kgMS," Hurrell said.
"This follows favourable pasture growth across most of New Zealand earlier in the season, noting many parts of the country are currently experiencing very dry conditions."
Hurrell said Fonterra's half-year performance was underpinned by a strong earnings in the Ingredients business.
Fonterra chief executive Miles Hurrell says the co-op is in great shape. Photo: RNZ / Dan Cook
While Foodservice earnings were down on last year's record result, he said there had been growth in sales volumes and above average margins in Foodservice and Consumer businesses, despite the higher farmgate milk price.
"Our robust first-half performance saw earnings growing alongside the strong Farmgate Milk Price, reflecting the strength of our core business," he said.
Fonterra was also continuing to invest in digital services, which was expected to cost between $450 million and $500m over six years, with annual expenditure peaking at $130m this financial year.
"As we look to the balance of the year ahead, we're focused on maintaining this momentum in performance, while progressing delivery of our strategy, including the dual-track Consumer divestment process which is on track as planned," he said.
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